The holiday season is fast approaching, and for many, it’s one of the busiest and most expensive times of the year. In fact, holiday shoppers plan to spend an average of $1,552 on gifts, travel, and entertainment this year, according to PWC’s 2024 Holiday Outlook.

While making travel plans, hosting gatherings, and shopping for loved ones can be exciting, you could end up throwing your budget out of whack if you aren’t careful. Consider these six strategies to keep your holiday spending in check and start 2026 debt-free.

Ideally, the key to ensuring your holiday spending doesn’t make a massive dent in your budget is to factor it into your budget throughout the year. However, if you haven’t been saving for the holidays, you can still be strategic about spending and saving money now.

A sinking fund is a savings account meant for a planned future expense that doesn’t fit into your regular monthly budget, such as a vacation, home down payment, or holiday shopping.

By setting aside a bit of money on a consistent basis, you can spread out the expense and avoid taking on new debt or scrambling for funds when you need them. And there is still some time between now and the height of the holiday season you can use to build up savings for holiday expenses such as gifts, parties, decorations, and more.

Review your budget to see how much you can comfortably afford to set aside each time you get paid. You may also want to revisit your current savings goals and see if you can adjust your savings account contributions to prioritize holiday savings until the end of the year.

Read more: Holiday budget guide: How to save money and avoid debt

Some banks and credit unions offer accounts specifically designed for holiday savings.

For the most part, they are similar to traditional savings accounts. However, holiday savings accounts may come with lower fees or higher interest rates to encourage saving.

Keep in mind, though, that there may be minimum balance requirements or penalties for withdrawing money before the holidays. If you’d prefer a savings account with fewer restrictions, you can also consider a high-yield savings account, which pays above-average interest and can be accessed year-round.

If you have a rewards credit card, now is a good time to review your rewards balance. See if you have enough points or cash back to redeem for gift cards or a statement credit (or even rewards miles for upcoming travel) to offset holiday costs.

It also pays to be strategic about how you use your rewards card over the next couple of months. For example, if your card offers rotating categories that earn a higher rewards rate, choose one that aligns with your holiday spending plans, such as department stores or restaurants. Of course, if you do put holiday expenses on a card, be sure to stick with your budget so you can pay off the full balance each month. Otherwise, interest charges will wipe out your rewards, and then some.

But even if you don’t have a credit card — or don’t want to use one — you can still earn cash back on your holiday spending. Cash back browser extensions such as Rakuten, Honey, and Capital One Shopping award cash back on purchases made at popular retailers, regardless of the payment method used. Plus, they can also automatically search for and apply coupons when you shop online.

Ultimately, the holidays aren’t about overspending or buying luxury gifts for everyone on your list. Opting for a homemade gift can be a more intentional, heartfelt, and affordable way to show your loved ones that you’re thinking of them this season. Think: Baked goods, handmade ornaments, or even handwritten letters.

Another option is to set up a gift exchange with your friends and family. If you have a larger family or friend group, buying an individual gift for every person on that list can significantly dent your budget. If you can coordinate a gift exchange, it will save you money, and you’ll be able to put more time and thought into the perfect gift for whomever you’re shopping for.

If you’re hosting a party or holiday dinner, pre-planning can help you manage the costs. Buying items in bulk, purchasing non-perishables ahead of time when there’s a good sale, and spending some time searching for coupons can help you keep costs low.

Another creative way to save time and money on holiday meals is to host a potluck dinner. Reach out to your guests and see if everyone can commit to bringing one dish with them to your event. That way, you can save money on groceries — and avoid the headache involved with cooking multiple dishes.

These days, many Americans are struggling to pay for even their most basic living expenses. Although relying on credit cards when money is tight is rarely advised, the truth is that sometimes, it’s necessary.

However, you can use credit responsibly this holiday season, even if you need to carry a balance for a few months. The key is to choose a card with an introductory 0% APR, which allows new cardholders to avoid interest charges for a limited time.

When you open a 0% APR card, the purchases you make will not accrue interest until the end of the introductory period. Typically, intro periods last anywhere from six to 21 months. After that, your balance begins accruing interest at the standard APR. So, as long as you pay your balance in full by the time your intro period ends, you won’t accumulate any extra debt in the form of interest charges.

It’s important to stress that this strategy should only be used if you have a holiday budget in place and a plan for paying off your balance on time. If you struggle with managing debt or controlling spending, this probably isn’t the best route to take.

Many people struggle to fit holiday spending into their budget, and for good reason. With the rapidly rising cost of living and competing financial obligations, it can be a challenge to find spare funds to direct toward holiday expenses without having to make sacrifices in other areas. However, with the right strategies, you can lessen the financial blow of the holiday season.

The holiday season is in full swing, which means you probably have gift-giving on the brain. While you may enjoy showering loved ones with thoughtful gifts, doing so can take a toll on your wallet — especially if you haven’t budgeted for those purchases in advance.

Luckily, there are financing options available for all kinds of holiday-related expenses. A popular option around this time of the year is the holiday loan.

A holiday loan is a type of personal loan you can use to pay for holiday expenses, like gifts and travel, though you can use the funds for pretty much anything you’d like. They typically have a fixed interest rate and repayment period. Some banks, credit unions, and other lenders may call these "Christmas loans" and offer shorter loan terms to pay off the debt before the next holiday season.

What is a personal loan?

What can I use a personal loan for?

Where can I get a holiday loan?

Most holiday loans are unsecured and don’t require collateral to back the loan. That means banks, credit unions, and other lenders depend on other factors — like your credit history and debt-to-income ratio — to approve or deny your holiday financing application. The amount you can borrow and other loan terms will also depend on your creditworthiness.

While bad credit may make qualifying for a holiday loan harder, it’s not quite a deal breaker. In fact, many banks and credit unions are OK with a poor credit score if other parts of your loan application are strong. For example, a high income and low debt could make up for a poor credit history.

Holiday loans are a mixed bag of perks and drawbacks. Before you apply for a personal loan this holiday season, consider the following:

Pros

Personal loans usually offer fast funding. Many lenders will disburse your money within days of being approved for a personal loan. Several online lenders may even fund your loan the next business day.

Personal loans often offer a fixed rate and lower interest rates than other financing options like credit cards.

Many lenders offer a wide range of repayment periods and loan terms, allowing borrowers to choose a repayment plan that best meets their needs.

Cons

Personal loans come with added costs like origination fees, late payment fees, and prepayment penalties.

When determining your loan amount, you could be tempted to borrow more than you can feasibly afford to repay.

Using a personal loan to cover your holiday expenses is a short-term solution and won’t cover you next year.

If you’re unsure whether a holiday loan is the right move for you, there are other ways to help pay for travel costs, Christmas gifts, and other seasonal expenses.

Ideally, you’d avoid using the savings you’ve allocated for emergencies. However, if you have extra funds available in your savings account, it could be more cost-effective in the long run to take advantage of those savings rather than paying to borrow money.

If you’re looking to finance a one-off purchase or just a few holiday expenses, it might be a better option to look into using a buy now, pay later service. Not all retailers offer this as an option, but if you’re shopping with one that does, you can spread out the cost of those purchases over time. With buy now, pay later, you’d finance your purchase and repay that amount (plus interest) in a set number of installments. Typically, the first installment is due at the time of your purchase.

If you already own a credit card, you could use it to fund your holiday spending — you will, however, want to be wary of adding to your credit card debt if you can’t comfortably afford to make your minimum payments. If you don’t already have a credit card, several credit card companies offer 0% interest-free periods that allow you to finance your purchases without paying interest for a certain period.

If you own a rewards credit card, it can’t hurt to check your cashback balance or your points and miles to determine if you can redeem any of those rewards to help you reduce your holiday costs. Many credit card companies allow you to redeem rewards for travel, gift cards, a statement credit, or even a check or direct deposit into your bank account.

A personal line of credit allows you to borrow up to a predetermined limit from your lender. While credit cards are physical cards you can use to access your money, a line of credit can be accessed via check, bank transfer, or in-person withdrawals.

When borrowing any type of loan, you want to be extra diligent as you research your loan options. There are lenders out there that take part in predatory lending practices (additional fees, higher rates, etc.) to make extra money at the consumer’s expense.

Warning signs to be aware of that could signal a predatory lender:

Your potential lender is using aggressive sales tactics: A predatory lender will go to any lengths to secure a new borrower. As such, a tell-tale sign of a predatory lender could be aggressiveness or persistence in their approach. This could involve being solicited via mail, telephone, or even a knock at your door.

There is a lack of clarity around the total cost of your loan: If your lender isn’t clear about the APR or fees associated with your loan, you should see this as a red flag. Lenders are required to provide consumers with key information about their loan products so that they can make the best decision for their financial situation.

Loan terms that seem too good to be true: If it seems too good to be true, it just might be. Be on the lookout for loans with shorter terms that could have higher-than-normal APRs. Payday loans, for example, are a popular financing option for smaller purchases and generally offer a speedy approval. The catch: a typical payday loan carries an annual percentage rate (APR) of almost 400%.

Ultimately, borrowing money to cover your holiday shopping comes with added costs. It will mean that you’ll have to budget for monthly payments and interest long after the holidays. It could also make it more difficult to secure financing for other expenses in the future.

If you hope to avoid taking on new debt for future holiday costs, consider doing some pre-planning for next year.

Saving for the next holiday season starts with knowing how much you intend to spend. Take some time to make a list of your regular holiday expenses and determine how much you’ll need to put away each month to hit your savings goal.

Where you put your savings is just as important as how much you’re saving. For example, putting your holiday savings in a high-yield savings account or certificate of deposit (CD) can help you earn interest on your balance with no extra effort.

In the end, every little bit you can save ahead of time for the holidays will ease the financial burden down the line. Boosting your savings by eliminating unnecessary spending or picking up a side gig to earn some extra money will make all the difference come next year.

By making the right money moves now, you can improve your financial situation and set yourself up to thrive next holiday season without the extra cost of a loan.

Americans are planning to spend big this holiday season, despite inflation, tariffs, and an ongoing government shutdown that has left many federal workers without a paycheck.

According to the National Retail Federation’s annual consumer survey, the average person expects to spend $890 this year on holiday gifts, food, decorations, and other seasonal items.

Unfortunately, that means many people will also start the new year with credit card debt. But one growing movement aims to change that. Known as “slow shopping,” this approach emphasizes intention over impulse, helping shoppers stick to their budgets and shop more mindfully.

If you’re struggling to keep your holiday budget in check, slow shopping could be the solution. Here’s how it works.

Slow shopping is a mindful approach to buying that encourages people to take their time and make thoughtful decisions. Shoppers prioritize quality and personal values over impulse buying or convenience.

In practice, slow shopping might mean waiting 24-48 hours before clicking “buy,” creating a list before shopping, or doing deep research into a brand’s values before making a purchase. It’s a financial strategy too — slow shopping curbs overspending and reduces clutter while aligning spending with personal priorities.

Read more: What is values-based budgeting, and how does it work?

According to a survey conducted by Talker Research on behalf of Affirm, nearly 3 in 4 respondents (73%) said they adopted the slow shopping approach for the 2024 holiday season. Top reasons for doing so included ensuring they only purchased items they truly wanted, taking more time to research their purchases, and taking advantage of more deals and promotions.

If you’d like to give slow shopping a try, here are a few best practices to keep in mind:

The earlier you start your shopping, the more time you have to scope out the best deals, find coupons, and settle on the perfect item for every person on your gift list. But it’s important to have a plan before you whip out your credit card.

Start by creating a list of gift ideas and recipients as soon as possible. In fact, it can be helpful to keep a running list throughout the year. For instance, if a friend mentions a scent they love or a favorite brand, jot it down so you have some inspiration when it comes time to start your holiday shopping.

Once your list is complete, you’ll have an idea of what your gift-giving budget looks like. And if the total amount is higher than you’d like, take this opportunity to make some adjustments. Then, you can brave the stores with a specific target in mind.

Retailers use scarcity and urgency tactics to make shoppers feel like they’re getting an exclusive deal, like “limited-time” offers and doorbuster deals. In reality, many of these promotions repeat throughout the season — or even offer better discounts closer to the holidays.

Tools such as Honey, CamelCamelCamel, or PriceBlink can help you confirm whether a deal is truly a bargain. They show price-history charts and automatically apply coupons so you can shop smart, not fast.

Read more: 5 psychological money hacks to cut spending and increase savings

Heading out on a shopping spree when you’ve just been paid or treating your holiday shopping as a form of retail therapy can lead to impulse purchases and throw your budget off track.

Instead, schedule a day in your calendar to do some window shopping, allowing yourself plenty of time to visit a few different stores and compare prices. When you find a potential buy, ask yourself a few gut-check questions to determine if it’s the right move:

Do I actually need this, or do I just want it because it’s on sale?

Would I buy this if it weren’t discounted or trending?

Does this purchase align with my budget or my values?

Who am I buying this for, and why?

Then, give yourself 24 hours to think through the purchase, read reviews, and research the retailer's return policies.

After that cooling-off period, if you still think the purchase makes sense, go ahead and buy it.

Read more: How the 30-day savings rule can help you stop impulse spending and save more money

The holiday season is a time for having fun, spending quality time with loved ones — and spending money.

The average person plans to spend $890 on holiday gifts, food, decorations, and other seasonal items this year, according to the National Retail Federation’s annual consumer survey. That can put a big dent in your budget, and may even lead to a holiday debt hangover in January if you aren’t financially prepared.

Fortunately, the season of giving is also the season of opportunity. From wrapping gifts and walking dogs to selling handmade crafts online, a holiday side hustle can help you bring in extra cash when you need it most — and maybe even kick off a new, year-round stream of income.

Earning extra money with a side gig is one way to ensure you can afford added expenses around the holidays. Here are a few options to consider.

Are you someone who revels in crafting a neatly wrapped present with the perfect wrapping paper and ribbon combination? Well, you can get paid for this special set of skills. According to Zip Recruiter, professional gift wrappers in the U.S. make an average of $18 per hour.

There are many options for providing this service — you can work out of your own home, provide gift-wrapping services by appointment at clients’ homes, or even partner with local retailers to offer gift-wrapping services on-site.

The holiday season is a busy time for many people, and some prefer to outsource their everyday tasks — like grocery shopping for holiday meals or parties.

If you enjoy combing grocery store aisles with a shopping list in hand — and have your own transportation — consider signing up to work for a grocery delivery service such as Instacart, Amazon Fresh, or Shipt. The typical pay is $15 to $25 per hour after tips, depending on your location and efficiency.

You may need to pass a background check to become a shopper on these apps and/or provide proof of car insurance that covers commercial delivery work. So, if you decide to take on this side hustle, be sure to read the fine print and ensure you can comply with the app’s rules for joining.

Many pet parents travel abroad for the holiday season and rely on pet sitters to care for their animals during the holidays. If you’re an animal lover, you can use apps such as Rover and Wag! to connect with people in need of pet sitters. But if staying overnight in a stranger’s house isn’t your thing, you can also opt to provide dog walking services or home drop-ins for clients who are busy during the day.

Alternatively, if you have a network of friends and family who can refer you to clients, you can provide pet care services directly. This is the most lucrative option because there’s no middleman to take a cut of your earnings.

Many retail stores hire seasonal workers to meet the increased demand during the holiday season. If you’re looking for part-time work (and potentially, an employee discount), check out the dedicated “seasonal jobs” webpages for Target, Walmart, Kohl’s, Macy’s, Bath & Body Works, Best Buy, and other retailers. Common positions include cashiers, stock associates, sales floor associates, and greeters.

Keep in mind that seasonal retail roles often require you to work evenings, weekends, and holidays; being open to those shifts makes you much more hirable. You should also be willing to start right away and stay through early January. And if you perform well, there’s a chance you may be offered a full-time position once the holidays are over.

Holiday shoppers are often looking for creative gifts and decor. So if you’re particularly crafty, you could set up an online store on a site like Etsy and sell your handmade goods (Think: candles, ornaments, greeting cards, or custom tote bags).

Or maybe you’re an expert thirfter. If you have an eye for standout pieces, consider flipping your finds on eBay, Poshmark, or Facebook Marketplace.

Before taking on a side gig, it’s important to understand how it will impact your finances and lifestyle.

For instance, earning money on the side comes with tax implications. Whether you’re working an extra part-time job or earning side income doing gig work, the money you earn is considered taxable income. And if taxes aren’t automatically deducted from your paycheck, you’ll need to set aside 25% to 30% of your earnings for estimated quarterly taxes.

Read more: Filing independent contractor taxes: A step-by-step guide

It’s also important to find out whether your primary employer has any rules against having a side hustle before you get started. For example, you may have signed a noncompete clause that prevents you from working with competitors. Even if you didn’t, if your side gig and your main job are similar in nature and target the same customers, it could be considered a conflict of interest and put your main job at risk.

Finally, consider whether taking on a side gig will truly help or hurt your overall situation. Having extra money in the bank ahead of the holidays is great, but adding too much to your plate during an already busy time could lead to burnout in the new year. Plus, certain jobs may require an upfront investment for things like crafting supplies or gas for your car, which can eat into your profits.

So, be realistic about how much time and money you can dedicate to a holiday side hustle, and be sure you factor in some downtime to actually enjoy the holidays, too.

Read more: 6 creative holiday savings tips to keep your budget in check this year